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This entry was published on 2014-12-26
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SECTION 2-506
Rights of Financing Agency
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 5
Section 2--506. Rights of Financing Agency.

(1) A financing agency by paying or purchasing for value a draft which
relates to a shipment of goods acquires to the extent of the payment or
purchase and in addition to its own rights under the draft and any
document of title securing it any rights of the shipper in the goods
including the right to stop delivery and the shipper's right to have the
draft honored by the buyer.

(2) The right to reimbursement of a financing agency which has in good
faith honored or purchased the draft under commitment to or authority
from the buyer is not impaired by subsequent discovery of defects with
reference to any relevant document which was apparently regular.